More than 600 medicine that are usually prescribed to patients with diabetes, high cholesterol and hypertension have become cheaper effective January 1, 2019 under the Tax Reform for Acceleration and Inclusion (TRAIN) Act.
The Department of Health (DOH) has released a list of medicine - including their generic names, strength and form - that are covered by the TRAIN Law.
Find out if your medicine is included in the list here.
Section 84 of TRAIN, or Republic Act No. 10963, provides that the sale of drugs and medicine prescribed for the treatment and/or prevention of diabetes, high cholesterol and hypertension are exempted from the value-added tax (VAT).
The Bureau of Internal Revenue (BIR) issued Revenue Regulations 25-2018 on December 21, 2018 to prescribe the guidelines for the implementation of the law.
The VAT exemption applies to the sale by manufacturers, distributors, wholesalers and retailers of drugs and medicine covered by the TRAIN law.
Importation of these drugs and medicine, however, is still subject to VAT under Section 107 of the National Internal Revenue Code of 1997 (Tax Code). (Ventures Cebu)